How much is car tax: VED rates explained
Electric car owners will have to pay VED from 2025, and road tax will shoot up for non-electric vehicles from 2028. Here's everything you need to know...
There's an old saying that states that nothing in life is certain except death and taxes – and while we're not specialists on the former, we can certainly tell you everything you need to know about road tax bands.
Most buyers of new and used cars will need to pay Vehicle Excise Duty (VED) – often referred to as road tax. The costs usually rise every April, with increases generally calculated in line with inflation based on the Retail Price Index (RPI). For the most recent tax rise, in 2024, these equated to an increase of around 6%.
Electric car road tax: EVs to lose their exemption in 2025
There are some significant changes due to happen from 1 April 2025. From this time, EVs will lose their exemption from VED, and buyers will have to pay the next lowest first-year rate, which is currently £10.
The good news for EV owners is that they'll only pay £10 a year until 2029-2030 instead of the standard second-year-onwards car rate of £190.
There are no confirmed details yet, but it looks like EVs also won't have to pay the VED Expensive Car Supplement, although this may change.
At present, used EV owners will also have to start paying VED for the first time from April 2025: zero emission cars first registered between 1 April 2017 and 31 March 2025 will be eligible for the standard annual rate, which is currently £190 a year. However, this too may be changed to £10 a year in line with the new 2025-on rate for new EVs.
Alongside these changes, hybrid cars will lose the £10 discount that currently applies to them on first and subsequent year fees, so they will also pay the same as cars with petrol and diesel engines.
Car tax will become more expensive from April 2025 for older cars with the lowest emissions, too. The annual rate of VED for cars registered on or after 1 March 2001 and before 1 April 2017, with CO2 emissions of up to 100g/km, will stop being free and rise to £20.
Petrol, diesel and hybrid car road tax: big increases from 2025
VED costs for hybrid and internal combustion-engined (ICE) cars will rise steeply in many cases. The increases are as follows:
Rates for cars emitting 1-50 g/km of CO2, including hybrid vehicles, will increase from £10 a year to £110 for 2025-26.
Rates for cars emitting 51-75 g/km of CO2, including hybrid vehicles, will increase from £30 to £130 for 2025-26.
All other rates for cars emitting 76g/km of CO2 and above will double from their current level for 2024-25. This means the VED payable for a Ford Puma mild hybrid with CO2 emissions of 122g/km will be £820 for the first three years, and a Land Rover Defender with 243g/km emissions will cost £6690 in VED for the three years, including the Expensive Car Supplement.
First year VED rates 1 April 2025 to 31 March 2026
| CO2 emissions (g/km) | First year VED rate |
|---|---|
| 0 | £10 |
| 1-50 | £110 |
| 51-75 | £130 |
| 76-90 | £270 |
| 91-100 | £350 |
| 101-110 | £390 |
| 111-130 | £440 |
| 131-150 | £540 |
| 151-170 | £1360 |
| 171-190 | £2190 |
| 191-225 | £3300 |
| 226-255 | £4680 |
| More than 255 | £5490 |
Current car tax bands: How much will it cost to tax my car?
For most drivers of new and older cars, the annual cost rose by between £5 and £10 a year in 2024-2025, although the price hikes were much steeper for drivers of new vehicles with the highest emissions. The first-year rate of car tax is set on a sliding scale based on the car's CO2 emissions. For the year from 1 April 2024 it starts with pure electric cars, which pay a £0 rate of VED.
At present, pure electric vehicles don’t have to pay VED after year one, either, but that is set to change in April 2025, when their exemption from car tax ends. However, instead of paying the standard seond-year-onwards car rate of £190 a year, they will only pay £10 a year until 2029-2030.
At present, EVs are also exempt from the additional 'expensive car' VED for new cars, including plug-in hybrids, costing more than £40,000. Anyone buying a new car costing more than that from 1 April has to pay £390 a year for years two to six (a total of £1950) on top of the standard rate of VED for the vehicle. While no details are confirmed yet, it looks like EVs will remain exempt from the Expensive Car Supplement.
After the first year, all petrol and diesel cars first registered after 1 April 2017 currently attract a flat rate of £190, while hybrid owners will pay £180 a year. At present, in April 2025, hybrid cars lose their discount on the standard rate and owners of EVs registered from 1 April onwards must pay this rate of VED too.
First year VED rates 1 April 2024 to 31 March 2025
| CO2 emissions | First-year VED rate |
|---|---|
| 0 | 0 |
| 1-50 | £10 |
| 51-75 | £30 |
| 76-90 | £135 |
| 91-100 | £175 |
| 101-110 | £195 |
| 111-130 | £220 |
| 131-150 | £270 |
| 151-170 | £680 |
| 171-190 | £1095 |
| 191-225 | £1650 |
| 226-255 | £2340 |
| More than 255 | £2745 |
Car tax rates for cars registered between 1 March 2001 and 31 March 2017
If you bought your car before 1 April 2017 or buy a second-hand car that was registered before that date, the amount of car tax you pay will depend on the car's emissions. Below are the VED rates for cars registered between 1 March 2001 and 31 March 2017.
From 1 April 2025, Band A, for vehicles with emissions up to 100g/km of CO2, will be scrapped, and their owners will have to pay the Band B rate.
| VED band | CO2 emissions (g/km) | Annual rate |
| A | Up to 100 | £0 |
| B | 101-110 | £20 |
| C | 111-120 | £35 |
| D | 121-130 | £160 |
| E | 131-140 | £190 |
| F | 141-150 | £210 |
| G | 151-165 | £255 |
| H | 166-175 | £305 |
| I | 176-185 | £335 |
| J | 186-200 | £385 |
| K | 201-225 | £415 |
| L | 226-255 | £710 |
| M | More than 255 | £735 |
Why you still have to apply to tax your tax-free car
Owners of cars that qualify for free VED must still apply to renew their road tax, even though they don’t have to pay the fee.
Many low-emissions cars that were first registered before 1 April 2017 and emit up to 100g/km of CO2 qualify for free VED. However, their owners will still get an annual renewal reminder and must apply for road tax, even though there is nothing to pay. Anyone ignoring the renewal notice runs the risk of a fine of up to £1000.
Cars first registered between 1 March 2001 and 31 March 2017 and producing 100g/km of CO2 or less qualify for free VED. As for cars registered after 1 April 2017, only zero-emissions electric vehicles are eligible for free VED; everything else is charged according to their CO2 emissions.
How to pay for road tax
You can pay for your car tax online by visiting the Government's dedicated website. To do so, you'll need a unique reference number, which can be found on tax reminders issued by the DVLA, the V5C log book for your car, or from the green 'new keeper' slip in the log book if you've just bought the car.
You can also pay for road tax over the phone, although doing so means you cannot pay by direct debit, or you can pay by visiting a post office.
It's important to remember that even if you are legally exempt from paying road tax, for example if you're disabled, then you still need to register your car for tax purposes.
SORN: Taking your car off the road
You don't need to pay car tax on a car that is legally declared as being off the road, and the process of doing this is called a Statutory Off Road Notification – or SORN for short.
If you declare your car as being SORN, you can get a refund for any full months of remaining tax the car has, but you cannot legally use it on the road until you tax it again. If you've already sold your car, you don't need to declare it as being SORN, but you do need to tell the DVLA that it has been sold.
The SORN starts immediately if the tax on your car has already expired, but otherwise it will begin on the first day of the next month after your tax expires.
You can apply for the SORN notice online, and to do so you'll need to have the 11-digit number from your car's V5C document, and the 16-digit number from your car's tax reminder letter. You can also apply for the SORN notice by phone or by post.
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FAQs
Since 2014, you have not been able to transfer road tax from one car to another. This means, for example, that you cannot transfer the remaining tax from your old car to a new car that you've just bought. Instead, you can declare your old car as being SORN, receive a refund for any full remaining months of tax, and pay for tax on your new car.
Prior to 2014, cars came with tax discs which could be sold alongside the car, meaning that car's tax could be transferred along with the car.
In most circumstances, it is illegal to drive your car on a public road without paying car tax. We say 'in most circumstances', though, because there are a few exceptions to this rule.
The first exception is if you are driving your car to a pre-booked MOT test – you cannot tax your car without a valid MOT certificate, so driving to obtain that certificate is allowed.
Another exception is if you are disabled, while another is if you are driving a car more than 40 years old, since many classic cars do not have to pay road tax. Similarly, fully electric cars are also currently exempt from paying road tax, but this is due to change in 2025.
Remember, though, that even if you are eligable for a tax exemption, you still need to apply for it.
Generally speaking, you can lower the amount of road tax you need to pay by buying a cheaper car that's also efficient – that's because car tax for most new cars is calculated based on its purchase price and the level of its C02 emissions.
At the moment, you can also lower your road tax bill to absolutely nothing by buying an electric car. However, while electric car owners currently do not have to pay road tax, this is due to change from 2025.
